WACC Calculator
Calculate the Weighted Average Cost of Capital, a firm's average after-tax cost of capital.
Equity
Typically from CAPM.
Debt
Interest rate on debt.
Formula
The WACC formula is:
WACC = (E/V * Re) + (D/V * Rd * (1 - T))
- E = Market value of equity
- D = Market value of debt
- V = E + D (Total value)
- Re = Cost of equity
- Rd = Cost of debt
- T = Corporate tax rate